AUD/USD analysis: en route to break above 0.7300

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7277

Australian dollar backed by the strong momentum in equities.
Chinese October Trade Balance figures could help the pair extend its advance.

The AUD/USD pair traded as high as 0.7299 on the back of broad dollar's strength post-US mid-term elections, retreating just modestly from the level in the American session. Really discouraging data, as the Australian AIG Performance of Construction Index plunged to 46.4 in October from 49.3 in the previous month, was overshadowed by solid gains in European and US indexes. Limiting the pair's advance, on the other hand, were softer base metals' prices, with gold losing the 1,230.00 mark. The country has no relevant macroeconomic figures to offer this Thursday, but China will offer its October Trade Balance figures. In dollar terms, the country is expected to post a surplus of $35.0B, while imports are seen up by 14%, and exports by 11.0%. Better-than-expected numbers should maintain the Aussie on the winning side.

From a technical point of view, the AUD/USD pair is poised to extend its advance, as it's currently developing well above all of its moving averages, with the 20 SMA maintaining a strong bullish slope after crossing above the larger ones. Furthermore, the pair is far above the 61.8% retracement of its September/October decline at 0.7200, and the strong static support at 0.7250. Technical indicators in the mentioned chart have eased modestly, holding near overbought readings, rather reflecting the intraday retracement from daily highs than suggesting an upcoming slide.

Support levels: 0.7250 0.7200 0.7165

Resistance levels: 0.7315 0.7340 0.7375

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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